You must now verify your drivers license to watch Pornhub in Louisiana

At the start of the year, a new law went into effect in Louisiana, which requires online publishers to conduct age verification checks if their site’s content is more than 33.3% pornography.

In accordance with this law, Pornhub now requires visitors to verify their age with the LA Wallet app, a digital wallet for Louisiana state drivers licenses. Other popular adult websites haven’t instituted age checks yet, according to Motherboard. But per the new law, porn sites can be sued for damages that result from a minor’s access to such content. TechCrunch reached out to Pornhub for comment.

“Due to advances in technology, the universal availability of the internet, and limited age verification requirements, minors are exposed to pornography earlier in age,” the legislation says. “Pornography contributes to the hyper-sexualization of teens and prepubescent children and may lead to low self-esteem, body image disorders, an increase in problematic sexual activity at younger ages, and increased desire among adolescents to engage in risky sexual behavior.”

Hello from the surveillance state of Louisiana. People in Louisiana have to use their drivers license to go to pornhub. This is truly wild. Under his eye. https://t.co/uji6Jo3Tde pic.twitter.com/pVKEeVcCGw

— Public Defendering (@fodderyfodder) January 2, 2023

This legislation was authored by Representative Laurie Schlegel (R-LA), who also advocated for legislation that made it illegal for transgender teens to participate school sports in accordance with their gender identity. Before taking office in 2021, Schlegel worked as a sex addiction counselor.

A sex worker, professor, and research fellow at UCLA’s Center for Critical Internet Inquiry, Olivia Snow describes these age verification checks as part of a “sex panic.” Even though this legislation states that sites that conduct age verification cannot retain identifying information, Snow believes that porn consumers may still fear data breaches, which is a very valid concern.

Websites like PornHub and OnlyFans require performers to prove their age and identity as a way of cracking down on nonconsensual content and child sexual abuse material (CSAM). But if consumers are required to hand over legal documents in order to watch porn, they might seek out other sites, where the content might not be as well-vetted.

“It’s really just further marginalizing sex workers, which I think is going to be the primary effect,” Snow told TechCrunch. “I imagine this means that there will be an increased black market of premium content that’s non-consensually disseminated.”

Legislation like Louisiana’s Act 440, as well as SESTA/FOSTA, are positioned as advocating for children’s safety. But in practice, this legislation usually just makes it more difficult for sex workers to do their jobs safely. Plus, in some cases, these laws have actually made it more difficult for law enforcement to curb sex trafficking.

In 2018, the Department of Justice’s seized Backpage.com, which sex workers used as a tool to help them vet in-person clients. When the site was shut down for money laundering and sex trafficking, Indiana police said that it became more difficult for them to catch people running sex trafficking operations.

Snow says Act 440 “is likely to also have an effect similar to that of Backpage coming down, which is, you know, just sex workers losing another stream of income and having to resort to less protected avenues.”

In 2020, Senator Elizabeth Warren (D-MA) proposed a study to the Senate on the secondary effects of SESTA/FOSTA on sex workers.

“Sex workers have reported a reduced ability to screen potential clients for safety, and negotiate for boundaries such as condom use, resulting in reports of physical and sexual violence,” the bill says. “Many sex workers have turned to street-based work, which has historically involved higher rates of violence than other forms of transactional sex.”

Snow describes the act of requiring people to upload their ID to watch porn as surveillance. In the most extreme cases, she says this kind of surveillance can harm LGBTQ populations.

“As homophobia and transphobia — especially homophobia in the context of porn — is rising, I could totally see the state zeroing in on people consuming gay porn, or lesbian porn, and either surveilling them further or criminalizing that,” she said. In the text of Act 440, the bill warns that pornography can inspire “deviant sexual arousal,” but does not define what “deviant” means.

“Trans women are disproportionately represented in sex work,” said Snow. “I don’t know if that’s a conscious decision for lawmakers, or if that’s just circumstantial, but I think trans women sex workers, as usual, will be the most affected.”

For years, the U.K. government has been working on an online safety bill, which has been in limbo due to continual leadership changes. As it stands, the bill could institute similar age checks that would require users to verify their age before accessing sexually explicit content.

In the past, the U.K. government has tried to enforce age checks on porn sites, but dropped the plan in 2019 due to concerns about the technical and regulatory challenges of mandating age verification, as well as privacy concerns. Now, age checks in the U.K. are up for consideration once again.

In any case, we won’t be surprised if a bunch of Louisiana residents suddenly express interest in learning how to use a VPN.

You must now verify your drivers license to watch Pornhub in Louisiana by Amanda Silberling originally published on TechCrunch

Former FTX CEO SBF pleads not guilty to U.S. criminal charges

FTX founder and former CEO Sam Bankman-Fried plead not guilty to all eight counts of U.S. criminal charges on Tuesday.

Bankman-Fried appeared before a judge in the U.S. District Court in New York City on Tuesday with his lawyers, Mark Cohen and Christian Everdell. Criminal charges against the 30-year-old former billionaire include wire fraud, conspiracy to commit money laundering and conspiracy to misuse customer funds, among others. The former FTX CEO is also facing suits by the SEC and CFTC over similar charges.

Prior to the announcement, Bankman-Fried was expected to plead not guilty. This decision could turn into a lengthy legal battle, and he could face up to 115 years in jail if convicted on all charges. His trial date has been set to October 2, 2023.

In late December, FTX co-founder and former CTO Gary Wang and Alameda Research CEO Caroline Ellison both plead guilty to federal criminal charges in relation to the FTX collapse. The two are also facing civil penalties from the SEC and CFTC alongside the criminal charges. Wang and Ellison plan to cooperate with prosecutors and will be major witnesses given their close ties to both Bankman-Fried and FTX and its affiliated crypto hedge fund Alameda.

Last month, a U.S. judge released Bankman-Fried on a $250 million bail bond after he was extradited to America from the Bahamas. The bail package allowed Bankman-Fried to remain under house arrest at his parents’ home in Palo Alto, California.

Bankman-Fried’s lawyers also filed a letter to the Manhattan federal court on Tuesday seeking redactions of the names of two individuals who intend to help secure his multi-million dollar bail in attempts to protect them from public attention.

The lawyers argued there’s no need for public disclosure after his parents “have in recent weeks become the target of intense media scrutiny, harassment, and threats. Among other things, Mr. Bankman-Fried’s parents have received a steady stream of threatening correspondence, including communications expressing a desire that they suffer physical harm.”

SBF’s representation argued there is, accordingly, “serious cause for concern” for additional retaliation for others involved in the bond.

It has been a little under two months since the once-major crypto exchange FTX filed for Chapter 11 bankruptcy and Bankman-Fried stepped down as CEO, only to be replaced by Enron turnaround veteran John J. Ray III.

On December 13, the U.S. House Financial Services Committee held its first hearing focused on FTX’s collapse. Ray sat as the only witness for the hearing as Bankman-Fried, who was originally scheduled to testify, was unable to join after being arrested in the Bahamas.

During the four-hour hearing, Ray’s testimony addressed a number of aspects in the situation from the extent to which customer funds were misused, to internal operations – or lack thereof.

When asked if FTX had significant risk management systems, Ray said at the time, “there were virtually no internal controls and no separateness whatsoever.”

Later in the hearing, Ray disclosed that there was no board overseeing FTX, aside from Bankman-Fried. FTX, once valued at $32 billion, didn’t have an accounting or human resources department. It did, however, have a legal department and employees with compliance titles — but no department for them to call home.

As it stands, Bankman-Fried’s plea is a risky move as he diverts from his former colleagues who plead guilty. In general, many crypto community members view Bankman-Fried’s attitude as cocky – given the media tour he went on before being arrested where he appeared on networks from Good Morning America to platforms as niche as crypto-focused Twitter spaces.

This is a developing story and may be updated.

Former FTX CEO SBF pleads not guilty to U.S. criminal charges by Jacquelyn Melinek originally published on TechCrunch

How well did Israel’s cybersecurity industry do in 2022?

The massive valuations and funding rounds of 2021 left some room for optimism around the state of the Israeli cybersecurity industry in 2022, instilling a sense of security in Q1 of the new year. While other sectors began to feel the shifting tides of the market as the year progressed, capital continued to freely flow into cybersecurity, further reinforcing the belief that it is a persistently resilient outlier in tech, immune to market instabilities and unable to be shocked into a downturn.

After closing the book on 2022 this week, it is safe to say that this optimism was somewhat misguided. With hindsight, 2021 can be categorized as an anomaly that sent the industry into a tailspin, with bloated valuations exceeding actual revenue and funding rounds scaling at what many warned was an unhealthy pace. The repercussions of this spiral are evident in our 2022 analysis of funding and M&A data for the Israeli cybersecurity ecosystem.

In 2022, overall funding for Israeli cybersecurity startups fell by a dramatic 64%, from $8.84 billion in 2021 to $3.22 billion this year, and the number of funding rounds decreased from 135 in 2021 to 94. When compared to overall funding in 2020 ($2.75 billion over 109 funding rounds), it seems that 2021 was a blip on the radar, and that the industry is returning to where it left off in 2020.

The majority of capital that did flow into Israel’s cybersecurity industry poured directly into seed rounds of early-stage startups.

Early stage gets the funding

Our data indicate that the majority of capital that did flow into cybersecurity this year poured directly into one very distinct area: seed rounds of early-stage cybersecurity startups. The average 2022 seed round actually shattered the 2021 record ($7 million), reaching a whopping $9 million. In total, seed funding rose by 65% this year, from $233 million in 2021 to $384 million in 2022.

This striking amount of capital, dedicated to the earliest stages of company building, demonstrates ongoing investor confidence in the cybersecurity industry’s potential to innovate and build solutions for increasingly acute threats.

Furthermore, it indicates the difficulty in raising Series A rounds this year, as investors’ thresholds for these rounds grew in light of the economic crisis. While the number of Series A rounds remained almost unchanged since 2021 (30 rounds last year and 24 rounds in 2022), investors preferred to support the seed rounds of startups that will grow sustainably and cautiously from the get-go.

“Investors understand that seed funding has a clear baseline, as the costs of building a company have not decreased,” says Iren Reznikov, director of Corporate Development and Ventures at Sentinel One. “They know that building a company from the ground up and ensuring that it reaches its Series A round with maximum maturity while hitting all of its benchmarks, costs money. At the same time, investors expect founding teams to set clear goals for reaching their Series A and strive to reach product-market fit at an early stage by engaging with prospective customers faster.”

This confidence is shared by cybersecurity founders, who, despite this year’s market volatility, still believe in the potential to build something meaningful for enterprise protection and business continuity. “Early-stage startups are best poised to respond to the changing needs of a fiscally constrained market,” says Slavik Markovich, co-founder and CEO of Descope, a stealth startup building a service for application developers in the authentication space.

“A tight economy is usually accompanied by increased fraud and cyber attacks. User adoption and conversion have become even more critical in this market, with businesses looking for solutions that reduce friction for their end customers in order to prevent any sources of churn. Founding teams at early-stage companies that focus on solving these problems will continue to attract investor interest.”

Return of the cyberveterans

How well did Israel’s cybersecurity industry do in 2022? by Walter Thompson originally published on TechCrunch

Remember how this whole working thing works?

Welcome back toEquity, the podcast about the business of startups, where we unpack the numbers and nuance behind the headlines. As promised, I’m taking over Equity Monday for the beginning of this year as Alex is out on paternity leave. Big hugs to his growing family!

We’re starting the year with big post-PTO energy, because there’s no other way I know how to do it. Here’s what we chatted:

Tesla missing expectations, Meta doing its let’s-just-acquire-smart-talent thing, and a debut in the S&P 500 that caught my attention.
A big idea that is running around over at Matrix. TC’s Paul Sawers looks into how messaging apps may become more interoperable thanks to a fascinating new protocol. To me, this screams the ideas of decentralization from crypto last year, but with a more understandable pitch. Catch me Slacking you on WhatsApp!
Finally, we end with a look ahead at CES this week. We have reporters on the ground catching the moonshots, and we’ll have updates for you with the full crew on Friday!

More to come! You can follow me on Twitter@nmasc_or on Instagram@natashathereporter.

Equity drops at 10 a.m. PT every Monday and at 7 a.m. PT on Wednesdays and Fridays, so subscribe to us on Apple Podcasts,Overcast,Spotifyandall the casts. TechCrunch also has agreat show on crypto, ashow that interviews founders, one thatdetails how our stories come together, and more!

Remember how this whole working thing works? by Natasha Mascarenhas originally published on TechCrunch

Hackers claim ransomware attack on Los Angeles housing authority

The Housing Authority of the City of Los Angeles, or HACLA, has confirmed it is investigating a cybersecurity incident shortly after the LockBit ransomware gang claimed responsibility for a cyberattack on the agency.

HACLA, which provides affordable housing to more than 19,000 low-income families across Los Angeles, was added to LockBit’s dark web leak site on December 31. The listing, seen by TechCrunch, claims that LockBit has stolen 15 terabytes of data from the housing agency.

Screenshots posted by the cybercriminals suggest the data includes the personal details of people who sought housing assistance from the city, as well as data from the city agency’s payroll, human resources, and accountancy files.

In a statement given to TechCrunch, HACLA spokesperson Courtney Gladney declined to comment on specifics, but said that HACLA is experiencing “a cyber event” that resulted in “disruption” to the agency’s systems.

“We are working diligently with third-party specialists to investigate the source of this disruption, confirm its impact on our systems, and to restore full functionality securely to our environment as soon as possible,” the spokesperson said. “We remain committed to providing quality work as we continue to resolve this issue.”

At the time of publication, HACLA’s website appears to be operational but has not yet publicly acknowledged the cyber incident on its website or social media.

LockBit’s claimed attack on HACLA marks the second major cyberattack on a Los Angeles city agency in recent months. In September, the Los Angeles Unified School District — the second-largest school district in the U.S. — was hit by the Russian-speaking Vice Society ransomware group. The gang later published hundreds of gigabytes of data stolen during the attack, including passport details, Social Security numbers, health information, and psychological assessments of students.

LockBit, meanwhile, is one of the more prolific ransomware gangs, with claimed attacks on tech manufacturer Foxconn, U.K. health service vendor Advanced and IT giant Accenture. In November, a dual Canadian-Russian citizen was charged for their alleged participation with the ransomware gang.

Hackers claim ransomware attack on Los Angeles housing authority by Carly Page originally published on TechCrunch

Two CEOs is better than one with Henrique Dubugras from Brex

Welcome back to Found, where we get the stories behind the startups.

This week Darrell and Becca are joined by Brex co-founder and co-CEO Henrique Dubugras to chat about his corporate credit card and expense management startup. Henrique talked about what made him and his co-founder (Pedro Franceschi) decide to launch the company and why the friends, who met online as teenagers, decided to be co-CEOs. Henrique also talks about how Brex navigated changes at the startup this year, and how he personally handled layoffs, all while Darrell and Becca do a questionable job of hiding their disdain for Brex’s legacy competitor.

Subscribe to Found to hear more stories from founders each week.

Connect with us:

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Via email: found@techcrunch.com

Two CEOs is better than one with Henrique Dubugras from Brex by Rebecca Szkutak originally published on TechCrunch

Microsoft now has its first official union in the U.S.

At ZeniMax, a Microsoft-owned gaming studio, 300 quality assurance (QA) testers have voted to unionize. This marks Microsoft’s first official union in the U.S., as well as the biggest gaming union in the country.

Union organizing has been on the rise in the video game industry, particularly among QA workers. In 2022, QA testers at Activision Blizzard have successfully formed unions at Raven SoftwareandBlizzard Albanythrough the Communication Workers Alliance (CWA), which will also represent ZeniMax’s union. But while Activision Blizzard has attempted tostall union organizingat every turn, Microsoftpledged in June that it would not stand in the way of employee organizing. So, by earning a majority of votes in favor of unionization, Microsoft will officially recognize ZeniMax Workers United, according to the CWA. Microsoft has not yet responded to a request for comment.

“Microsoft has lived up to its commitment to its workers and let them decide for themselves whether they want a union,” said Communications Workers of America President Chris Shelton in a statement. “Other video game and tech giants have made a conscious choice to attack, undermine, and demoralize their own employees when they join together to form a union. Microsoft is charting a different course which will strengthen its corporate culture and ability to serve its customers and should serve as a model for the industry and as a blueprint for regulators.”

ZeniMax includes subsidiaries like Bethesda Softworks and id Software, which produce franchises like The Elder Scrolls, Doom and Fallout.

Zachary Armstrong, a senior quality assurance tester II at id Software, told TechCrunch last month that the unit is organizing to fight for better pay and conditions.

“QA testers are consistently placed at the bottom of the totem pole when it comes to game development, to the point that we’re not even considered game developers.” Armstrong said. QA workers rigorously test all facets of video games to identify and resolve problems that impact user experience. “That’s reflected in our pay, and that’s reflected in our work, especially with regard to crunch.”

In the lead up to deadlines, QA testers may be expected to work unsustainable hours to get a game ready for public eyes — this is referred to as “crunch.” The QA testers who unionized at Activision Blizzard have also raised concerns about the expectations of crunch time. Before announcing their intent to unionize, the Raven Software QA testers went on strike to protest layoffs affecting 12 contractors — before those contracts were terminated, the QA testers had been working overtime for five weeks straight.

The next step for the union at ZeniMax is to negotiate their contract with Microsoft.

“Before us is an opportunity to make big changes and bring equity to the video game industry,” said Victoria Banos, a senior QA audio tester, in a statement. “We want to put an end to sudden periods of crunch, unfair pay, and lack of growth opportunities within the company. Our union will push for truly competitive pay, better communication between management and workers, a clear path for those that want to progress their career, and more.”

Microsoft now has its first official union in the U.S. by Amanda Silberling originally published on TechCrunch

Here’s how you described the tech industry’s 2022 in a headline

As readers know, we have fun with headlines on this site. But clearly, so do all of you. As part of our end of the year coverage, the Equity podcast team asked listeners to write a headline that represents 2022 in tech. Listeners showed up, with the brutal, the real and the holy-moly-yes-that-happened-this-year-how-could-you-forget.

Our recap episode of this wonky, 12-month-long roller coaster is now live wherever you find podcasts. We feature a ton of your answers in the episode, but some were so good that we feel like they deserve to be in a story of their own. So, buckle up and read on if you’re just in the mood for some tweet-sized recaps after a saga of a news cycle:

Natasha’s favorites:

“Mofos Unhinged” by Isa Watson, founder and CEO of Squad
“We came, we saw, we did not conquer” by Snigdha Sur, founder and CEO of The Juggernaut.
“Adrenal Fatigue and the Case Against Billionaires” by Martha Shaughnessy, founder of The Key PR.
“Just put up a roller coaster gif and call it a day” by Tate Hackert, president and founder of Zayzoon.
“Whiplash” by Eric Bahn, co-founder and GP at Hustle Fund VC.
“Crypto burns just as well as paper money” by Madison Campbell, founder and CEO of Leda Health.
“2022 is the year everything became a Rorschach test” by Phil Libin, the CEO and co-founder of All Turtles and Mmhmm.
“Went fast and broke everything” by Pearl Tempest Consulting.
“And you thought having to stay home sucked” by Morgan Oliveira, food entrepreneur.

Alex’s favorites:

Goblin Mode” by Samantha McGarry, an EVP at Inkhouse PR. How can we not give a moment for a word-phrase that, frankly, we’ve all embodied in recent months.
BeReal-istic about valuations” by Roger Johnson, a PR whiz at Method. Johnson is also a fan of the Great British Baking Brouhaha, and is therefore ever in our good graces.
Fund a round and find out,” by Dan Gray of Equidam. Fuck around and find out has long been a useful phrase to keep in one’s pocket. This particular variation is very 2022.
Alex Kondrad of Forbes had a similar take, offering up “2022: The Year That Fucked Around And Found Out.”
farewell to all that” by Chris Messina, well known for his creation of the hashtag. Here Messina brings together a vibe, and the leading emoji of the year in a single tweet. Nice.
Grimes’ ex boyfriend becomes most important Republican” by Paul Griffiths, an investor and general Twitter bon vivant. While some folks are still pretending to be confused about Musk’s politics, Griffiths is not whacking a circle around a shrub.
The year that men got away with literally everything” by Leslie Feinzaig, an investor and writer. She has a point.
Back to Reality, Oops Here Comes Gravity” by Luba Lesiva, an investor and one of our favorite Twitter users. We are always here for the meeting point of venture capital and rap lyrics.
And finally, “Crypto down, AI up, Biden exists, Twitter is a mess, all of the above are overvalued” by Justin Mitchell of SoFriendly, who tried to get the entire year into just a few words. Well done!

Mary Ann’s favorites:

Reversion to mean. Mean funding. Mean interest rates. Mean cost control. Mean bosses” by Simon Taylor, self-proclaimed Fintech Geek
How about we let ChatGPT choose the headline for 2022…” by Shannon K. Wilsey, VC, healthcare comms.
Only when the tide goes out do you discover who’s been swimming naked” by Gregg Wallace (quoting Warren Buffet), VC, Building Ventures
Abracadabra: smoke and mirrors be gone” by Kim Hong,
2022, a return to the United State of WTF?!?” by Dan Taylor, scribe, Tech.Eu
The shit show that was 2022’ by Jodi Echakowitz, CEO of Boulevard PR
Revaluation Nation” by Kelly Soderlund, Sr. Director of Comms at TripActions
Goblin Mode” by Jordan French, Executive Editor of Grit Daily News
fucksake” by Karl Deeter, founder of Online Application

Here’s how you described the tech industry’s 2022 in a headline by Natasha Mascarenhas originally published on TechCrunch

TechCrunch+ roundup: Normalizing down rounds, 2023 climate trends, term sheet basics

The “Pineapple Express” that dropped several inches of rain over the Bay Area last week left the ground saturated. The next storm front expected to arrive tomorrow is expected to bring disruption and destruction on a massive scale.

It’s a decent metaphor for our startup ecosystem: Just as there aren’t enough sandbags in San Francisco to keep everyone’s house dry, rising interest rates, skittish investors and looming economic uncertainty are poised to bring valuations down even further in 2023.

“In a culture where growing valuations are worn like a badge of honor, founders may fear that taking a down round would render them Silicon Valley pariahs,” writes Holden Spaht, managing partner at private equity firm Thoma Bravo.

Full TechCrunch+ articles are only available to members
Use discount code TCPLUSROUNDUP to save 20% off a one- or two-year subscription

In a TC+ column, Spaht encourages entrepreneurs to revisit the operational and fundraising tactics they leaned on in the bygone era of cheap money.

“The funding route you take has enormous consequences for the future of your company, and so it shouldn’t be clouded by ego or driven by media appetites,” he says.

Cutting back is always an option, but not every company is in a position to bootstrap or freeze hiring, which is why Spaht suggests exploring “trade-offs” like convertible notes.

Everyone gets wet when it rains, but accepting a down round allows founders to keep building, “and you have the benefit of resetting expectations of value in a challenging market,” writes Spaht.

Happy new year!

Walter Thompson
Editorial Manager, TechCrunch+
@yourprotagonist

How to make the most of your startup’s big fundraising moment

No matter the size, investments are a sign of validation for any startup.

However, “when you see other companies raising hundreds of millions of dollars, it can be easy to think no one will be interested in hearing about your startup’s much smaller round,” writes Hum Capital CMO Scott Brown.

In his marketing playbook for early stage startups, Brown explains how founders can use fundraising announcements to maximize media interest, comply with SEC guidelines and align more closely with investors to “get the most bang for their buck.”

How to protect your IP during fundraising so you don’t get ripped off

Image Credits: MirageC (opens in a new window) / Getty Images

Most investors won’t sign a non-disclosure agreement before reviewing your pitch because your idea is probably not worth stealing.

That’s not an insult, just a statement of fact.

The odds are low that you’re the first person to come up with an idea, and an NDA could create legal hassles for VCs who interact with hundreds of entrepreneurs each year, many of whom are trying to solve the same set of problems.

“Not all concepts developed by startups are legally protectable,” writes Alison Miller, trial lawyer at Holwell Shuster & Goldberg LLP. “The next best thing founders can do is to signal as much as possible that pitch materials shared with funders are confidential.”

Six climate tech trends to watch for in 2023

Image Credits: Getty Images

Tim De Chant looked back on his reporting from last year to sketch out his predictions for where he believes climate tech is heading:

Software to deploy and manage renewable power
Direct air capture
Green hydrogen
Home renovation contractor software
Critical minerals mining
Fusion power

“Will 2023 be the inflection point that marks the start of exponential growth? I suspect we’ll know more around this time next year.”

Redefining ‘founder-friendly’ capital in the post-FTX era

Image Credits: stockcam (opens in a new window) / Getty Images

Could the FTX debacle have been avoided if investors had taken a more active interest in the company’s operations?

Given the chilly climate for late-stage fundraising and widespread economic uncertainty, “it’s time for the startup community to redefine what ‘founder-friendly’ capital means and balance both the source and cost of that capital,” writes Blair Silverberg, co-founder and CEO of Hum Capital.

In a TC+ guest post, he weighs the relative benefits of active versus passive investors, breaks down the basics of debt financing, and shares advice “for founders seeking a better balance of capital and external expertise for their businesses.”

High-growth startups should start de-risking their path to IPO now

Image Credits: Richard Drury (opens in a new window) / Getty Images

It sounds counterintuitive, but in this chilly fundraising environment, late-stage startups need to plan to go public when the market opens up.

“While some companies delay their IPOs, others can play catch-up and prepare for the time when the open market itches to invest again,” writes Carl Niedbala, COO and co-founder of commercial insurance broker Founder Shield.

In a detailed TC+ article, he looks at why “sensible companies are de-risking their public path,” which sectors are best positioned, and perhaps most notably, which benchmarks startups can use to tell if “an IPO is in their future.”

What to look for in a term sheet as a first-time founder

Image Credits: syolacan (opens in a new window) / Getty Images

Most financing contacts between early-stage startups and investors take the form of a SAFE note, also known as a simple agreement for future equity.

Legally binding, the document establishes both a company’s valuation and deal terms. “Once you get the term sheet, the game has really begun,” says James Norman, managing partner at Black Operator Ventures.

To help first-time founders better understand “what to ask for” and which red flags to avoid, Connie Loizos interviewed Norman, along with Mandela Schumacher-Hodge Dixon, CEO of AllRaise, and Kevin Liu of Techstars and Uncharted Ventures.

Dear Sophie: Do employees have to stop working until they get their EAD?

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

One of our employees is on an H-4 visa and has an Employment Authorization Document. It’s been five months since he filed to renew his EAD, which will expire next month. Is there any way to expedite this process? Does he have to stop working if he doesn’t receive his new EAD card before his old one expires?

Because it’s taking so long to get EAD cards, we’re worried about another of our employees, who has an L-2 visa with an EAD scheduled to expire early next year.

In addition, the H-4 visa employee wants to visit his family in India because it’s been more than three years since he last went. Will he and his family be able to return to the U.S. after four weeks?

— Mindful Manager

TechCrunch+ roundup: Normalizing down rounds, 2023 climate trends, term sheet basics by Walter Thompson originally published on TechCrunch

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